Major U.S. Market Indexes Down on Global Growth Worries
Adviser Investments’ Chief Investment Officer Jim Lowell has the market analysis for Friday, March 22. All major U.S. market indexes declined on renewed concerns about a global growth slowdown and potential recession. The Dow Jones Industrial Average, S&P 500 and NASDAQ fell 1.8%, 1.9% and 2.5%, respectively. Investors reacted to the release of weak manufacturing data in Europe’s Purchasing Managers Index as well as the yieldYield is a measure of the income on an investment in relation to the price. There are several ways to measure yield. The current yield of a security is the income over the past year (either dividends or coupon payments) divided by the current price. spread between 3-month and 10-year Treasury bondsA financial instrument representing an IOU from the borrower to the lender. Bond issuers promise to pay bond holders a given amount of interest for a pre-determined amount of time until the loan is repaid in full (otherwise known as the maturity date). Bonds can have a fixed or floating interest rate. Fixed-rate bonds pay out a pre-determined amount of interest each year, while floating-rate bonds can pay higher or lower interest each year depending on prevailing market interest rates. briefly inverting early Friday.